Courses » SS1 » SS1 Commerce » Commerce Exam Topics » Factors of production - Questions and Answers

Factors of production - SS1 Commerce Past Questions and Answers - page 1

1

Which factor of production refers to natural resources?

A

Land

B

Labor

C

Capital

correct option: a

Land

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2

Which factor of production represents human effort?

A

Land

B

 Labor

C

Capital

correct option: b

 Labor

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3

What does capital refer to in the factors of production?

A

Natural resources

B

Human effort

C

Man-made resources

correct option: a
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4

Who takes the initiative to organize the factors of production and run a business?

A

 Entrepreneur

B

Labor

C

Capital

correct option: a

 Entrepreneur

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5

Which factor of production involves the risks and decision-making for production?

A

Entrepreneur

B

Capital

C

Labor

correct option: a

Entrepreneur

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6

What encompasses labour as a factor of production?

Labor encompasses  the skills, knowledge, and abilities of workers.

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7

Who takes on risks and makes decisions in the production process?

Entrepreneurs bear the risk and make decisions regarding the production process, such as what to produce, how to produce, and for whom to produce.

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